Australia Facility Management Market Set to Nearly Double by 2033 on Tech, Sustainability and Outsourcing Trends

The Australia facility management market is on a strong growth trajectory, driven by rising demand for integrated services that boost operational efficiency and sustainable building performance. According to IMARC Group, the market reached USD 691.3 million in 2024 and is expected to grow to USD 1,303.4 million by 2033, exhibiting a compound annual growth rate (CAGR) of 7.3% during 2025–2033.

Facility management encompasses a range of services — from hard services like building maintenance to soft services such as cleaning and security — and plays a pivotal role in ensuring safe, efficient and compliant operations across commercial, institutional, industrial and public infrastructure sectors. As businesses and public entities confront complex building requirements, evolving regulatory expectations and the need for digitally enabled facilities, professional FM services are becoming indispensable to Australian enterprises.

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Why the Market Is Growing So Rapidly

One of the primary drivers of market growth in Australia is the adoption of advanced technologies within facility management operations. Tools such as the Internet of Things (IoT), artificial intelligence (AI) and building information modelling (BIM) are being integrated to optimise predictive maintenance, automate routine tasks, enhance energy efficiency and improve overall facility performance. These technologies not only drive operational cost savings but also contribute to improved real time decision making and system reliability — benefits that appeal strongly to large commercial tenants and owners.

Sustainability and environmental responsibility are also major growth catalysts. As businesses face tightening environmental regulations and increased stakeholder expectations around corporate ESG (Environmental, Social and Governance) performance, facility management services that incorporate green building practices — such as energy optimisation, waste reduction and sustainable maintenance strategies — are in higher demand. These services help organisations comply with new codes and standards and attract environmentally conscious tenants.

The outsourcing trend is another significant factor. Many Australian companies — particularly in commercial and industrial sectors — are opting to outsource facility management functions rather than manage them in house. Outsourced FM allows organisations to streamline non core operations like cleaning, security and building upkeep under a single provider, unlocking efficiencies and predictable cost structures. Integrated facility management (IFM) solutions, which bundle multiple services, are especially sought after.

Urban development and infrastructure expansion are creating steady demand for FM services as well. New commercial complexes, retail spaces, healthcare facilities and logistics hubs require comprehensive lifecycle management solutions to ensure building performance and compliance. FM providers that can support these infrastructure demands — particularly in high growth regions — are gaining traction.

Another factor supporting market growth is regulatory compliance and workplace safety mandates. Increasingly stringent government rules related to occupational health and safety, environmental standards and building codes are motivating organisations to engage professional FM services that can ensure ongoing compliance and mitigate legal and operational risks.

What the Opportunities Are

1. Technology Enabled Solutions: Expanding offerings that leverage IoT, AI, predictive analytics and real time monitoring platforms can help clients reduce costs, increase uptime and meet digital transformation goals.

2. Sustainable and Green FM Services: Providers that specialise in energy management, green certifications and ESG compliance support will be attractive to organisations aiming to meet environmental targets and regulatory requirements.

3. Integrated Facility Management (IFM): Offering bundled service packages covering hard and soft FM services can enhance efficiency for clients, create recurring revenue streams and differentiate providers in the competitive landscape.

4. Regional Expansion: Many remote and regional areas of Australia remain under served by FM services; targeted geographic expansion can unlock new contracts in industrial, healthcare and government sectors.

5. Sector Specific Expertise: Tailored FM solutions for specialised industries (e.g., healthcare, education, aged care, defence) that require regulatory expertise and customised service protocols can command premium pricing.

6. SME Outsourcing Solutions: Small and medium enterprises are increasingly outsourcing FM responsibilities; developing flexible, scalable service packages for this segment can drive steady growth.

7. Lifecycle and Retrofit Services: As ageing buildings require refurbishment and system upgrades, FM companies offering lifecycle planning and retrofit solutions — particularly for energy efficiency — will be in demand.

Recent News & Developments in Australia Facility Management Market

February 2025: The Australian Building Codes Board released proposals under the National Construction Code 2025 that emphasise energy performance and sustainability targets for new and existing buildings. This regulatory shift is motivating facility owners to adopt advanced FM solutions that support compliance, energy optimisation and environmental reporting, laying the groundwork for deeper engagement of professional services.

• April 2025: A major Australian facility management firm announced the launch of a new AI integrated building management platform designed to reduce energy consumption by providing predictive analytics and automated control systems. The investment reflects growing industry confidence in digital solutions and is expected to significantly enhance service delivery across commercial portfolios.

• August 2025: Industry data showed a notable uptick in outsourced facility management contracts in the corporate and healthcare sectors, with year on year contract values rising in excess of 10%. This trend suggests strengthening trust in external FM partners as organisations prioritise operational efficiency and compliance amid complex building and safety requirements.

Why Should You Know About Australia Facility Management Market?

The Australia facility management market is becoming increasingly strategic for businesses, real estate owners and policymakers alike. With market value projected to nearly double from USD 691.3 million in 2024 to USD 1,303.4 million by 2033 at a 7.3% CAGR, the sector represents a compelling growth story underpinned by technology, sustainability and outsourcing trends.

For facility management service providers, this growth points to expanding opportunities across technology driven services, green building solutions and integrated offerings. Investors can find attractive prospects in companies that successfully differentiate through digital capabilities and sustainability expertise. For business leaders and occupiers, partnering with professional FM firms helps reduce operational risk, enhance compliance and improve asset performance.

From a policy perspective, supporting technology adoption, sustainability frameworks and workforce development within the FM industry can bolster building efficiency and economic productivity. In an environment where buildings and infrastructure play a critical role in economic activity, the FM sector is increasingly central to operational excellence, workplace safety and long term value creation.